DGRW - WisdomTree U.S. Quality Dividend Growth Fund

NasdaqGM - NasdaqGM Real Time Price. Currency in USD
+0.06 (+0.14%)
At close: 4:00PM EDT
Stock chart is not supported by your current browser
Previous Close43.16
Bid43.10 x 2200
Ask43.52 x 1800
Day's Range42.97 - 43.25
52 Week Range33.21 - 49.75
Avg. Volume672,582
Net Assets3.06B
PE Ratio (TTM)N/A
YTD Daily Total Return-10.10%
Beta (5Y Monthly)0.95
Expense Ratio (net)0.28%
Inception Date2013-05-22
  • InvestorPlace

    3 Monthly Dividend ETFs for Reliable Income

    The Federal Reserve took interest rates to near zero and Treasury yields are tumbling, putting added emphasis on steady streams of income, including monthly dividend ETFs.As their name implies, exchange-traded funds with monthly dividends deliver distributions each month, whereas many of their counterparts do so on a quarterly basis. For those new to the world of ETFs, it's commonplace that fixed income funds pay interest every month …But the universe of equity-based funds that are monthly dividend-payers is significantly smaller.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThen there's the matter of the weakening equity market. When it comes to dividends in the current climate, investors' priority shouldn't be how frequently the payouts arrive. Rather, it's the viability of those dividends and the company's ability to grow payouts.Taking those factors into consideration, let's examine a few of the best monthly dividend ETF options here, including the following: * WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:DGRW) * Nationwide Risk-Managed Income ETF (NYSEARCA:NUSI) * WisdomTree SmallCap Dividend Fund (NYSEARCA:DES)Let's get into why these funds may be worth considering, particularly at the monthly dividend ETFs that have been unfairly gutted relative to recent highs. Monthly Dividend ETFs to Buy: WisdomTree U.S. Quality Dividend Growth Fund (DGRW)Expense ratio: 0.28% per year, or $28 on a $10,000 investmentFirst, let's get the bad news out of the way. The WisdomTree U.S. Quality Dividend Growth Fund is off 29.64% just this month and resides 30.15% below its 52-week high. That slumped DGRW's yield to 2.82%, one of the highest such percentages for the fund since it came to market nearly seven years ago.Those percentages are ugly. No denying that, but among monthly dividend ETFs, DGRW has several perks. One that's particularly relevant in the current environment is what's NOT found in this fund. That being large exposure to the high-yielding energy and real estate sectors, two groups that appear poised for a spate of negative dividend action over the near-term. Those sectors combine for just 1.03% of DGRW's weight.On a related note, due to a methodology that is more about what a company's future dividend habits will be and less about what that company has done in the past, DGRW does an admirable job of not only identifying companies that can sustain payouts, but grow those dividends, too. * 10 Stocks to Buy as They Ride a Coronavirus Tailwind To the point of DGRW's sector allocations, the fund features a nearly 22% weight to technology stocks, one of the highest allocations to the group in the dividend fund category. Among the fund's top holdings are Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL), two companies with the balance sheets to not only weather a downturn, but continue growing dividends during rough times as well. Nationwide Risk-Managed Income ETF (NUSI)Expense ratio: 0.68%Keeping with theme of generating income from technology stocks, the Nationwide Risk-Managed Income ETF offers investors an interesting way of hedging long positions in funds tracking the Nasdaq-100 Index or stocks such as Apple and Microsoft.NUSI is a "rules-based options trading strategy that seeks to produce high income using the Nasdaq-100 Index," according to Nationwide.In plain English, NUSI generates income via covered call writing on the Nasdaq-100 and uses a portion of those proceeds to buy puts on that index, thereby giving investors a hedge.That doesn't mean NUSI is perfect. It's down 11.11% this month, but that's better than the 27.29% shed by the Nasdaq-100 and this monthly dividend ETF had a yield of 7.83% at the end of last year, well above the current yield of 0.87% on the Nasdaq-100. WisdomTree U.S. SmallCap Dividend Fund (DES)Expense ratio: 0.38%Small-cap stocks have been absolutely torched in the recent downturn with the Russell 2000 recently probing multi-year lows and is off about 40% this month, a decline mirrored by the WisdomTree U.S. SmallCap Dividend Fund.Recent weakness in the monthly dividend fund may be a case of the baby thrown out with the bath water because DES has a long history of being one of the higher quality options among small-cap funds. The issue today is DES being tarnished by talk that many smaller companies gorged on debt during the bull market and now face the specter of crimped balance sheets.That's probably true for some small-cap growth companies but DES dances between the quality and value factors, confirming that its recent bloodletting is perhaps a case of too much too soon. The risk here is DES's 27.11% weight to financials, the smaller ones of which are under interest rate pressure. * 10 Cheap Stocks to Buy Under $10 However, DES remains home to some credible takeover targets - assuming a recession is brief - and it's yield of nearly 4.10% is a whopper among small-cap funds even though it's not a yield-based strategy.Todd Shriber has been an InvestorPlace contributor since 2014. As of this writing, he owns shares of DES and DGRW. More From InvestorPlace * America's Richest ZIP Code Holds Wealth Gap Secret * 7 Stocks Insiders Are Buying Big Amid the Market Panic * 7 A-Rated Stocks to Buy After the Seismic Market Shift * 4 Dividend Stocks Worth a Look Now The post 3 Monthly Dividend ETFs for Reliable Income appeared first on InvestorPlace.

  • ETF Trends

    Kevin O’Leary’s “OUSA” ETF Crosses $600M in AUM

    Kevin O’Leary’s O’Shares ETF Investments announced recently that O’Shares FTSE U.S. Quality Dividend ETF (OUSA) surpassed $600 million in assets under management (AUM). OUSA returned 25.24% in 2019 and ...

  • ETF Strategies to Combat Coronavirus Outbreak

    ETF Strategies to Combat Coronavirus Outbreak

    The contagious coronavirus has rattled financial markets. We discuss some strategies to combat the outbreak.

  • ETF Trends

    Investors Should Stay Invested in Stock ETFs for 2020

    After a stellar year, the SPDR S&P 500 ETF (SPY) continued to strengthen in 2020 and is already up 3.1% so far, breaking out with six new all-time highs in the first 12 trading days. Despite the strong gains, many investors still remain bullish on the equity market outlook. According to the survey, 76% of wealthy investors place a high grade on the U.S. economy, and there has been a 16% jump among investors whom expect the market to rise by as much as 5% this quarter.

  • ETF Trends

    Dividend ETFs Could Be a Million-Dollar Move for Investors

    Just because the stock market is roaring doesn't mean investors should solely switch to risk-on, due diligence off. Right now, there could be too much exuberance with the latest record highs in the major indexes, and millionaires are looking to dividend-paying options and ETFs that pay dividends could be a million dollar move for all investors--big or small.

  • ETF Trends

    When Volatility Strikes, Play Defense with Dividend ETFs

    2020 is already proving to be a volatile year for markets as geopolitical risks are keeping investors from diving head first into the stock market with events like the U.S.-Iran conflict and the forthcoming 2020 presidential election up ahead. Dividend strategies can help mute the impact of volatility by giving investors a steady income stream in the event the markets do get bumpy as a result of unforeseen news events. “Dividend strategies have increasingly become top of mind for investors that want to participate in the up market that continues but they want to be prepared for the volatility that feels like is around the corner,” said Todd Rosenbluth, head of ETF & mutual fund research at CFRA.

  • ETF Trends

    Price Isn’t Always the Best Indicator in Value Investing

    One of the prime screeners value investors use to determine how cheap a fund is relative to its value is price—or in financial vernacular, it’s price-to-earnings (PE) ratio, but price isn’t always the best indicator of value according to market experts. “Chief among them are investments described as cheap and recommended to investors for that very reason,” wrote Peter Seilern in the Financial Times. “According to this established view, the main leading indicator of whether a publicly listed investment is cheap or expensive is its price-to-earnings (PE) ratio,” Seilern added.

  • ETF Database

    “DGRW” ETF Peaks Ahead to Future Dividend Growth

    Investors can get caught up in the short-term movements of the market, which makes it easy to get caught in making a rash decision when it comes to loading and unloading ETFs. When playing the dividend ETF game, it’s necessary to not just look at funds that offer the highest dividends, but also those that look to sustaining growth like the WisdomTree U.S. Quality Dividend Growth Fund (DGRW A-).

  • ETF Trends

    “DGRW” ETF Looks Ahead to Future Dividend Growth

    When playing the dividend ETF game, it’s necessary to not just look at funds that offer the highest dividends, but also those that look to sustaining growth like the WisdomTree U.S. Quality Dividend Growth Fund (DGRW) . DGRW seeks to track the price and yield performance of the WisdomTree U.S. Quality Dividend Growth Index. The index is a fundamentally weighted index that consists of dividend-paying U.S. common stocks with growth characteristics.

  • ETF Strategies to Tackle the Trade War Uncertainty

    ETF Strategies to Tackle the Trade War Uncertainty

    The Sino-US trade deal talks are held up due to a number of issues.

  • Phase 1 Trade Deal or Not: ETFs to Ride the Trend

    Phase 1 Trade Deal or Not: ETFs to Ride the Trend

    The fate of the 'phase 1' U.S.-China trade deal remains uncertain. In such a situation, we highlight some ETF strategies to ride out the trade volatility.

  • ETF Trends

    7 Dividend Stock ETFs for a Prolonged Low-Rate Environment

    Dividend yields recently surpassed those of benchmark Treasury notes for the first time since 2016, potentially providing further support for equity markets and dividend-paying stock exchange traded funds in this prolonged low-rate environment. According to Bank of America data, dividend yields for the S&P 500 index at 1.89% surpassed the yield of 10-year Treasuries at 1.5% for the first time in three years, CNBC reports. “Stocks are a ‘no brainer’ vs. bonds,” Bank of America analyst Savita Subramanian said in a note.

  • ETF Strategies to Follow Amid Recession Scares

    ETF Strategies to Follow Amid Recession Scares

    We highlight a few ETF strategies in the wake of recessionary warnings.

  • Dividend ETFs to Grab as Fed Cuts Rates Once Again

    Dividend ETFs to Grab as Fed Cuts Rates Once Again

    Let's find out whether it is the right time to invest in dividend ETFs as Fed cuts rates for the second time in 2019.

  • 7 Dividend ETFs to Own for the Next 30 Years

    7 Dividend ETFs to Own for the Next 30 Years

    Yes, seven exchange traded funds (ETFs) is a lot to own, so you don't need to own each and every fund that will be highlighted here. However, with 10-year Treasury yields currently residing around 1.50%, dividend ETFs have now have added allure.As seasoned investors know, dividends, particularly when reinvested over a long-term time frame, say 30 years, can play pivotal roles in boosting investor outcomes. In fact, over a span such as three decades, it is probable that those reinvested payouts will account for close to or as much of an investor's total returns as will appreciation in the underlying security.Other data points speak to the efficacy of dividend ETFs right here, right now. While many market observers are obsessing over the inverted yield curve, there's another yield scenario to monitor: the S&P 500 dividend yield moving above the yields on 10- and 30-year bonds. That usually bodes well for stocks.InvestorPlace - Stock Market News, Stock Advice & Trading Tips"Even though the ominous implication from the current inverted 2-year/10-year yield curve scenario has generated concern among investors, history offers a bit of encouragement," said CFRA Research. "Since WWII, whenever the S&P 500's month-end yield exceeded the yield of the 10-year note, the S&P 500 was higher 12 months later by an average 22% and gained in price in 74% of all 31 observations." * 7 Deeply Discounted Energy Stocks to Buy With those considerations in mind, here are some of the best dividend ETFs for long-term investors to consider. WisdomTree U.S. Quality Dividend Growth Fund (DGRW)Source: Who is Danny / Shutterstock.com Expense ratio: 0.28%The WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:DGRW) is one dividend ETF that checks many, if not all of the boxes investors look for with dividend ETFs that are slated to be core, long-term holdings.While DGRW is a dividend growth strategy, it does not focus on superficial metrics, such as dividend increase streaks. If it did that, it likely would not have a 22% weight to the technology sector, one of the largest weights to that group among any domestic dividend ETF. Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) combine for 10.3% of DGRW's weight.I'll try to boil this dividend ETF's methodology down into simple terms: the foundation underlying DGRW looks for traits that could be signals of a company's ability to continue paying AND raising dividends. So a company's past dividend history is less important here than its potential trajectory going forward."The current balanced make-up between strong profitability metrics and discounted relative valuations for WTDGI, largely achieved by avoiding the more expensive non-dividend payers, gives us confidence in the merits of this approach for a core U.S. equity allocation going forward," said WisdomTree. ProShares S&P 500 Dividend Aristocrats ETF (NOBL)Source: Shutterstock Expense ratio: 0.35%The ProShares S&P 500 Dividend Aristocrats ETF (CBOE:NOBL) is one of the dividend ETFs investors should consider if they want overt dedication to dividend increase streaks. NOBL follow the S&P 500 Dividend Aristocrats Index, which only includes stocks that have boosted payouts for 25 consecutive years.That's exclusive territory because even with some new additions to the fold earlier this year, NOBL holds just 57 stocks with a weighted average market value of $78.59 billion. The emphasis on increase streaks is nice, but what's really alluring about NOBL is its ability to be less volatile and perform less poorly when broader markets decline, something the dividend ETF has proven adept at in its almost six years on the market. Plus, NOBL isn't a high-yield, making it appealing for long-term investors looking to avoid financially strained companies. * 7 Best Tech Stocks to Buy Right Now "The richest dividend yields can point to firms with weak or declining profits, which could threaten the sustainability of the dividend and, more importantly, the price of the stock," according to Morningstar. "Aggressively chasing yield can also increase exposure to value investment style risk, as the highest-yielding stocks tend to be deep-value names. When value stocks are out of favor, that tilt can hurt performance." Vanguard International Dividend Appreciation ETF (VIGI)Source: Shutterstock Expense ratio: 0.25%The international counterpart to the wildly popular Vanguard Dividend Appreciation ETF (NYSEARCA:VIG), the Vanguard International Dividend Appreciation ETF (NASDAQ:VIGI) is a fine idea for investors looking for an international dividend ETF. And that is something income investors should do because there are some solid ex-US dividend growth markets and there are plenty of markets outside the U.S. with higher yields than are found on the S&P 500."This low-cost fund prioritizes dividend growth over yield, which emphasizes highly profitable firms that should hold up better than most during market downturns and offer attractive long-term returns," said Morningstar in a recent note . VIGI has a dividend increase requirement of seven years, which can be somewhat limiting in the international arena and the fund mixes developed and emerging markets exposure, though it tilts heavily to the former. WisdomTree U.S. SmallCap Quality Dividend Growth Fund (DGRS)Source: Shutterstock Expense ratio: 0.38%Small caps are often an underappreciated part of the dividend story, but the WisdomTree U.S. SmallCap Quality Dividend Growth Fund (NASDAQ:DGRS) can help investors gain a refreshed view of garnering income from smaller companies.DGRS is the small-cap counterpart to the aforementioned DGRW and uses a similar methodology to its large-cap counterpart. That emphasis on quality is particularly important at a time when many small-cap companies are taking on increasing debt, prompting concerns that small caps could lead another market decline.This dividend ETF would not be immune from such a scenario, but it would likely be less volatile and perform less poorly because while many small-cap companies aren't profitable, many DGRS components are. * 5 Retail Stocks That Belong on Your Shopping List Today "The growth factor ranking is based on long-term earnings growth expectations, while the quality factor ranking is based on three-year historical averages for return on equity and return on assets," according to WisdomTree. WisdomTree U.S. MidCap Dividend Fund (DON)Source: Shutterstock Expense ratio: 0.38%For investors seeking a mid-cap dividend ETF, the original is a winning bet over the long-term and the WisdomTree U.S. MidCap Dividend Fund (NYSEARCA:DON) is the original in this category. DON has a nifty distribution yield of 3.28%, far superior to what investors will find on traditional large- and small-cap benchmarks.DON's underlying index is "dividend weighted annually to reflect the proportionate share of the aggregate cash dividends each component company is projected to pay in the coming year, based on the most recently declared dividend per share," according to WisdomTree.DON does an admirable job of mixing cyclical and defensive sectors as the consumer discretionary, real estate, industrial and financial services sectors combine for combine for over 58% of DON's weight. Like the other WisdomTree dividend ETFs highlighted here (DGRW, DGRS), DON pays a monthly dividend for an even steadier income stream. VictoryShares Dividend Accelerator ETF (VSDA)Source: Shutterstock Expense ratio: 0.35%An oft-overlooked name in the dividend ETF conversation, the VictoryShares Dividend Accelerator ETF (NASDAQ:VSDA) takes a unique approach to generating equity income. VSDA is a dividend growth fund, not a high-yield play.VSDA "offers exposure to large-cap U.S. stocks, that feature not only a history of increasing dividends, but which also possess the highest probability of future dividend growth. It seeks to provide exposure to dividend growth, rather than yielding, offering a potential diversification benefit to high dividend yielding alternatives, particularly in a rising rate environment," according to Victory Capital Management. * 7 Triple Threat Growth Stocks to Buy for the Long Term Up 23.15% year-to-date, good for one of the best performances among dividend ETFs, VSDA allocates 25.53% of its weight to industrial stocks while technology and the two consumer sectors combine for nearly half the funds weight. VSDA's performance and methodology could and probably should lead to this ETF shedding its anonymous existence in the future. FlexShares Quality Dividend ETF (QDF)Source: Shutterstock Expense ratio: 0.37%The FlexShares Quality Dividend ETF (NYSEARCA:QDF) emphasizes quality, which is pivotal in identifying securities with the potential for long-term dividend growth. QDF's methodology features a dividend quality scoring system aimed at identifying companies with strong balance sheets. That methodology also mixes yield and dividend growth scoring, giving QDF a yield of 2.70%, which is decent by today's standards."This fund won't offer the highest yield in the category, but its yield has consistently topped that of the Russell 1000 Value Index. From its inception in December 2012 through March 2019, this fund's yield averaged 3.6%, about 40% higher than the yield of the Russell 1000 Value Index," according to Morningstar.Additionally, QDF employs a management efficiency scoring system in an effort to highlight management teams that are committed to maintaining sound balance sheets and doling shareholder rewards. This dividend ETF doesn't grab a lot of headlines, but it has $1.6 billion in assets under management and its foundation is highly suitable for long-term investors. QDF is nearly seven years old and has regularly topped large-cap domestic value funds over that time.Todd Shriber owns shares of DGRW. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Deeply Discounted Energy Stocks to Buy * 7 Stocks to Buy In a Flat Market * 10 Stocks to Buy to Ride China's Emerging Wealth The post 7 Dividend ETFs to Own for the Next 30 Years appeared first on InvestorPlace.

  • 4 Dividend ETFs to Ride Out Trade War Uncertainty

    4 Dividend ETFs to Ride Out Trade War Uncertainty

    Escalating trade war tensions are heightening the worries in the global market conditions. In the current scenario, we highlight some dividend ETFs to beat the heat.

  • ETF Trends

    7 Dividend Growth ETFs for a Low Yield Environment

    With rates depressed and attractive yields hard to come by in the fixed-income market, investors may want to consider dividend-paying stocks and related ETFs. Goldman Sachs argued that dividend payers ...

  • 5 Cheap ETFs That Aren’t Actually a Good Value

    5 Cheap ETFs That Aren’t Actually a Good Value

    There are now scores of cheap ETFs and by all accounts, investors love these products. Honing in on a specific fee range, even when excluding the two ETFs that do not have annual fees, there are 100 ETFs in the U.S. with expense ratios of 0.02%, or $2 on a $10,000 investment, to 0.08%. That's a lot of cheap ETFs.Seductive as cheap ETFs may be, investors owe it to themselves to approach these funds with discerning eyes. Remember, there is a difference between value and value traps. Said another way, not all cheap ETFs are good ETFs. Likewise, there are some expensive ETFs that merit their high fees.It is a slippery slope for investors. Scores of academic research and data points confirm that over the long term, saving on fees can have a meaningful impact on total returns. What investors need to weigh is saving with a cheap ETF really worth it if there is a better option with a higher fee out there.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn other words, if Fund A costs 0.05% per year and averages annual returns of 5%, but Fund B costs 0.30% a year and averages annual returns of 10%, simple math says Fund B is the better bet. * 7 Restaurant Stocks to Put on Your Plate With that in mind, here are some cheap ETFs that have better, but pricier rivals. Schwab U.S. Large-Cap Value ETF (SCHV)Source: GotCredit via Flickr (Modified)Expense ratio: 0.04% per year, or $4 on a $10,000 investment.The Schwab U.S. Large-Cap Value ETF (NYSEARCA:SCHV) is one of the cheapest ETFs in the value arena. Plus, Schwab clients can realize additional savings because the brokerage allows clients to trade its ETFs (and hundreds of others) commission-free.On a standalone basis, SCHV is not a bad cheap ETF. It is up 34.4% over the past three years, an admirable showing considering the struggles of value stocks over the course of this bull market. SCHV's strategy is easy to understand and the fund is appropriate for new and conservative investors alike. So there are plenty of benefits with this fund.However, it is hard to endorse this cheap ETF knowing that the iShares Edge MSCI USA Value Factor ETF (CBOE:VLUE) is out there. VLUE charges 0.15% per year, still decent among smart beta strategies, and the iShares fund has consistently outperformed SCHV by a wide enough margin that the cheaper ETF's fee is rendered moot. Vanguard FTSE Emerging Markets ETF (VWO)Source: Shutterstock Expense ratio: 0.12%Home to $61.3 billion in assets under management, the Vanguard FTSE Emerging Markets ETF (NYSEARCA:VWO) is the largest emerging markets fund in the world. It is also a cheap ETF. For emerging markets investors, there is a lot to like with VWO. It holds over 4,600 stocks and offers exposure to dozens of developing economies, through China is taking on increased prominence in this fund.As is the case with the aforementioned SCHV, VWO is not a bad cheap ETF per se. The rub with this fund is that there are more compelling options out there with higher price tags. Moreover, at least one of those funds is outperforming VWO by a wide enough margin that the higher fee is warranted.The JPMorgan Diversified Return Emerging Markets Equity ETF (NYSEARCA:JPEM) is a multi-factor fund that charges 0.45% per year. That fund's "index uses a multi-factor stock screening process that has historically driven strong performance," according to the issuer. * 7 Stocks on Sale the Insiders Are Buying Over the past three years, JPEM has outpaced VWO by 360 basis points with less volatility. iShares Core S&P Mid-Cap ETF (IJH)Source: Shutterstock Expense ratio: 0.07%The iShares Core S&P Mid-Cap ETF (NYSEARCA:IJH) is a cheap ETF avenue to mid-cap stocks. Its straight forward approach (it tracks the S&P MidCap 400 Index), coupled with its low fee, make it an appealing avenue to an often overlooked corner of the equity market.In fact, IJH is one of the cheapest ETFs in the mid-cap space and some competing funds that track the same index have significantly higher fees. The quibble with IJH is that there are better-performing options out there with higher fees, some of which also have significantly lower volatility than IJH.Sure, the Invesco S&P MidCap Low Volatility ETF (NYSEARCA:XMLV) charges 0.25% per year, but over the past three years, the fund has been almost 300 basis points less volatile than IJH while outperforming the cheap ETF by more than 800 basis points. iShares National Muni Bond ETF (MUB)Source: Shutterstock Expense ratio: 0.07%When shopping for a traditional municipal bond fund, investors should seek a broad, high-quality cheap ETF. The iShares National Muni Bond ETF (NYSEARCA:MUB). Thing is many cheap ETFs in the municipal bond space seem like they are intended for ultra-conservative investors that simply want a vehicle with steady income and slightly higher yields than cash instruments.Because the VanEck Vectors Municipal Allocation ETF (CBOE:MAAX) is a new fund (it debuted last month), weighing its past performance against MUB and other cheap ETFs in this space is currently impossible. The comparison here is more about potential. * 7 One-Stock Portfolios for Passive Investors MAAX charges 0.36% per year and because it holds other VanEck municipal bond ETFs, its roster is not only massive in terms of issues, the new ETF also spans durations and features a wide arrange of credit opportunities, both investment-grade and junk. Features like that are not found on many cheap muni ETFs. Schwab U.S. Dividend Equity ETF (SCHD)Source: Shutterstock Expense ratio: 0.06%There are plenty of cheap ETFs in the dividend realm and the Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) is one of those funds. SCHD has attracted a following in part to its low fee and its emphasis on domestic stocks that have dividend increase streaks of at least 10 years. Overall, this a sound, cost-effective fund for dividend investors.Those willing to jump up in fees, however, could be rewarded by the WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:DGRW), which we highlighted here earlier this month. At that time, we noted DGRW's underlying index emphasizes "both ROE and return on assets (ROA) as part of the selection requirements. Using ROA as a screening criterion penalizes firms using leverage to drive ROE," said WisdomTree.Over the past three years, DGRW, which pays a monthly dividend, has topped the cheap ETF SCHD by almost 700 basis points.Todd Shriber owns shares of DGRW and VWO More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best Stocks to Buy and Hold Forever * 10 Small-Cap Stocks That Look Like Bargains * 10 Names That Are Screaming Stocks to Buy The post 5 Cheap ETFs That Aren't Actually a Good Value appeared first on InvestorPlace.

  • 7 Best ETFs for a Well-Balanced Portfolio

    7 Best ETFs for a Well-Balanced Portfolio

    [Editor's Note: This Article was originally published on Jan. 24, 2019. It has since been updated]Investors are seemingly always on a quest for a portfolio they deem to be "well-balanced." Fortunately for investors seeking balance, exchange-traded funds (ETFs) make that objective significantly easier and, in many cases, less expensive than other instruments.Many of the best ETFs are inexpensive, highly liquid and span asset classes and regions, helping investors ameliorate the dreaded home country bias. Of course, what makes a well-balanced portfolio for one investor may not be properly balanced to another, but conventional wisdom does dictate that a mix of bonds and equities is a sensible starting point.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFrom there, more aggressive investors can add in alternative asset classes, including commodities, something many of the best ETFs do in diversified fashion. * 10 Stocks to Buy That Could Be Takeover Targets In the search for balanced portfolios, here are some of the best ETFs to consider. ETFs to Buy: JPMorgan BetaBuilders U.S. Equity ETF (BBUS)Source: Shutterstock Expense Ratio: 0.02% per year, or $2 on a $10,000 investment.You may have recently heard that a pair of ETFs launched with expense ratios of 0%. The JPMorgan BetaBuilders U.S. Equity ETF (CBOE:BBUS) is not one of those funds, but of the ETFs with fees, the newly minted BBUS is the cheapest, charging a mere 0.02% per year.While BBUS is new (it debuted in late March), it is one of the best ETFs to act as a core building block for properly balanced portfolios. This fund holds over 620 stocks, providing investors with exposure to over 85% of the U.S. equity market. BBUS has over $30 million in assets under management, which is a decent start, but for investors that like big ETFs, expect BBUS's stature to soon increase as JPMorgan launches a robo-advisor platform. BBUS will be one of the cornerstones of that offering.BBUS allocates 21.5% of its weight to technology stocks while the healthcare and financial services sectors combine for 27.3% of the fund's roster. Investors that embrace this fund should expect long-term returns comparable to those generated by the S&P 500 or Russell 1000 indexes. iShares Core Total USD Bond Market ETF (IUSB)Expense Ratio: 0.06%As mentioned earlier, a well-diversified portfolio does not begin and end with stocks. It should include fixed-income exposure, too. The iShares Core Total USD Bond Market ETF (NASDAQ:IUSB) is one of the best ETFs for novice bond investors or those simply looking for broad-based, cost-efficient exposure to domestic bonds.The $3.57 billion IUSB, which tracks the Bloomberg Barclays U.S. Universal Index, is one of the best ETFs for bond investors seeking diversity and cost efficiencies. Home to nearly 7,900 bonds, IUSB is also one of the least expensive fixed income funds on the market today. * The 10 Best Stocks for 2019 -- So Far IUSB has a 30-day SEC yield of 2.9%, a 12-month yield of 3% and an effective duration of 5.22 years. Due to heavy exposure to U.S. Treasuries and other government agency debt, credit risk is minimal with this best ETF. Bonds with AAA ratings account for 61.54% of the portfolio. WisdomTree U.S. Quality Dividend Growth Fund (DGRW)Expense Ratio: 0.28%Sure, there are cheaper dividend funds on the market, but the WisdomTree U.S. Quality Dividend Growth Fund (NASDAQ:DGRW) is one of the best ETFs in this category. Dividends, particularly when reinvested, are vital to investors' long-term outcomes, making DGRW ideal for a broad swath of market participants, be they rookies, sophisticated players or retirement planners.There are dozens of dividend ETFs for investors to consider, but DGRW's fundamentally weighted methodology stands out from the pack. A case can even be made that is a dividend ETF Warren Buffett himself would enjoy."Return on equity (ROE) is a metric Buffett has written on extensively: it's a 'quality' indicator for stocks, reflecting how much profit a business earns relative to its net equity capital," according to WisdomTree research.DGRW's underlying index emphasizes "both ROE and return on assets (ROA) as part of the selection requirements. Using ROA as a screening criterion penalizes firms using leverage to drive ROE," notes the issuer.DGRW also pays a monthly dividend and is worth the cost of admission relative to its peer group. WisdomTree U.S. SmallCap Dividend Fund (DES)Expense Ratio: 0.38%Like its stablemate DGRW, the WisdomTree U.S. SmallCap Dividend Fund (NYSEARCA:DES) is one of the stars in its respective category. This is one of the best ETFs for income-hungry investors as well as those seeking exposure to smaller stocks because DES is historically less volatile than rival non-dividend small-cap funds."This portfolio targets dividend payers without incurring too much risk," said Morningstar in a recent note. "Although the fund doesn't screen its holdings for profitability or dividend sustainability, a few dividend cuts across its portfolio shouldn't significantly affect its performance because it is broadly diversified and skews toward larger, more-stable names in the small-value Morningstar Category."DES allocates nearly a third of its combined weight to industrial and consumer discretionary stocks while the real estate and financial services sectors combine for 26.3%. Plus, this has long been one of the best ETFs in the small-cap value space. * 6 Big Dividend Stocks to Buy as Yields Plunge "From its launch in June 2006 through April 2019, the strategy has topped the small-value category average and the Russell 2000 Value Index by 1.2 and 1.0 percentage points annually, respectively, with similar risk," according to Morningstar. "The fund's favorable stock exposure within the energy and consumer discretionary sectors contributed to most to its outperformance." Vanguard Total Corporate Bond ETF (VTC)Expense Ratio: 0.07%While it is important to remember that bonds are an important part of well-balanced portfolios, investors should also remember that they should be heavily allocated to U.S. government debt. That strategy limits credit opportunities and some of the potential added upside associated with corporate bonds.Put simply, the Vanguard Total Corporate Bond ETF (NASDAQ:VTC) is one of the best ETFs for investors seeking a massive bench of investment-grade corporate bonds across varying durations and maturities. VTC is classified as an intermediate-term bond fund, but it features exposure to short-, medium- and long-dated corporate debt with almost 6,000 holdings.VTC accomplishes those objectives in cost-effective fashion by holding Vanguard's three other corporate bond ETFs, which span the aforementioned maturity categories. Over 87% of VTC's holdings are rated A or Baa and it has an average duration of 6.9 years. Vanguard Total International Bond ETF (BNDX)Expense Ratio: 0.09%Keeping with the theme of using cheap bond ETFs to enhance portfolio diversity, there is the Vanguard Total International Bond ETF (NASDAQ:BNDX). BNDX is one of the best ETFs in the fixed income arena this year in terms of both performance and asset-gathering acumen.BNDX tracks the Barclays Global Aggregate ex-USD Float Adjusted RIC Capped Index and holds nearly 5,800 bonds with an average duration of 7.8 years. There are other benefits to owning international bonds beyond making a portfolio more diverse. * 7 Bank Stocks to Leave in the Vault A fund such as BNDX can help investors access potentially higher yields than are found on domestic government bonds, gain exposure to monetary policies that are not delivered by the Federal Reserve and the potential for higher returns. Over the past three years, BNDX has outperformed the Bloomberg Barclays Aggregate Bond Index by nearly 200 basis points. iShares Core MSCI EAFE ETF (IEFA)Expense Ratio: 0.08%The iShares Core MSCI EAFE ETF (CBOE:IEFA) is one of the best ETFs for investors looking to bring cost-effective international equity exposure to their portfolios. IEFA, one of the largest ex-U.S. equity funds in the world, reflects the valuation discounts associated with many ex-U.S. developed markets, including Europe."Europe offers attractive asset valuations compared to history, especially in risk assets," according to BlackRock. "Regional assets have cheapened further compared to a year ago as concerns about growth and politics increased. The exception to this are core government bonds, which we believe to be expensive compared to global peers."IEFA's largest country weight is Japan at 24.75%, but four of its top five geographic weights are European nations, positioning the fund to take advantage of a rebound in stocks across the pond."As downward revisions to growth start petering out and incoming activity data begin to show signs of life, European risk assets might get a boost this year as value equities benefit," according to BlackRock.As of this writing, Todd Shriber owned shares of DES and DGRW. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 4 FANG Stocks Won't Be Bitten By Regulation Threats * 10 Stocks to Buy That Could Be Takeover Targets * 4 Big Bank Stocks Rebounding Compare Brokers The post 7 Best ETFs for a Well-Balanced Portfolio appeared first on InvestorPlace.